Environment protection

Astarta sugar plants strictly observe government regulations and Ukrainian laws on environmental issues. Namely, each plant observes individual norm-permits set by the Government Administration for Ecology and Environment as to waste disposal, special water use and air-emissions standards.

 These norms stiffen every year, thus each plant has an individual programme to lower wastes quantity. Some sugar production wastes, such as waste water, are used to fertilize and deoxidize soil on the fields of the Company's agricultural firms.

In line with our energy efficiency program, we plan to significantly decrease the consumption of natural gas at our sugar plants, which in turn leading to the less air-emissions of carbon dioxide responsible for the greenhouse effect.

Project Description
The European Bank of Reconstruction and Development (EBRD) is to provide financing to Astarta Group for the Astarta Group's investments in energy efficiency improvements at its sugar plants, (ii) purchase of equipment for its agricultural firms. The financing will allow for significant energy savings and improvements in the overall environmental performance of the company

Screening category and justification

The project was screened as B/1 requiring an environmental due diligence consisting of a Corporate Environmental Audit and an Environmental Analysis of the proposed investment plan for 2007-2010

Due diligence undertaken and outcomes

The environmental due diligence of the Project was undertaken by an independent international environmental consultant and included site visits to the Company headquarters and the key operational facilities and farms. During the due diligence meetings where also held with senior technical and production managers at the corporate and site levels. 
The Company operates a number of sugar processing facilities, which are being gradually modernized. Many of these facilities have been re-commissioned by Astarta in recent years and are currently being refurbished. Walkthrough the plants are in compliance with National environmental standards, additional investments are needed to meet EU environmental standards. Both the sugar plants and the farming operations are well managed, with high level of housekeeping.
The operation of sugar plants has a number of environmental impacts, ranging from water use to air and water emission as well as waste management. As part of the environmental due-diligence an EHS plan was proposed. It is aimed on implementing of system of environmental management and monitoring at Company?s plants. This includes the development of a corporate and sites specific environmental management.  The financing of energy efficiency measures will also significantly improve the environmental standing of the Company and allow to approach EU environmental standards.

Based on the environmental due diligence an Environmental and Social Action Plan (ESAP) was developed.  This will include the development of a systematic approach to environmental issues at the Company, implementation of an environmental management system certified to ISO 14001 standards and  water resourses saving.

Implementation requirements

• The Company will be required to provide the Bank with an annual environmental report, including updates on the ESAP, and notification on any material accidents or incidents.
• The Company will implement the ESAP and an Environmental Management System.
• The Company will conduct its business with due regard to National standards, and, after implementing of EHS Plan to approach EU environmental regulations and standards.
• The Company will hold  periodic environmental audits